Pubblicato · San Marino

US Adds 3 Chinese Entities to Xinjiang Forced Labor List: What Foreign Founders in China Need to Know

China's Ministry of Commerce strongly condemned the US decision to add three Chinese entities to the so-called Uyghur Forced Labor Prevention Act entity list, warning of necessary countermeasures. Foreign founders operating in China should monitor these developments as they may affect supply chains and compliance.

US Expands Entity List Under Uyghur Forced Labor Prevention Act

On October 28 (US Eastern Time), the US Department of Homeland Security announced the addition of three Chinese entities to the entity list under the so-called Uyghur Forced Labor Prevention Act. This move is part of ongoing US actions targeting Chinese businesses over alleged forced labor practices.

China's Ministry of Commerce (MOFCOM) spokesperson responded to a reporter's question on October 29, 2026, stating that China does not have forced labor and that all ethnic groups in Xinjiang enjoy free and equal employment with labor rights effectively protected by law. The spokesperson strongly condemned and firmly opposed the US measures, calling them groundless and part of a continued manipulation of human rights issues under the pretext of human rights to pursue unilateral protectionism and bullying.

China's Response and Impact on Businesses

According to the MOFCOM statement, the US had recently added a large number of Chinese entities to the so-called Xinjiang-related entity list. China has made solemn representations to the US and taken firm countermeasures. However, the US has continued to implement new sanctions, including adding Chinese biopharmaceutical technology companies to the list. The spokesperson noted that such listing practices deviate from the consensus reached by the two heads of state, seriously undermine the stability of China-US economic and trade relations, and violate humanitarian principles.

China urges the US to immediately stop political manipulation and smear attacks, and to cease unreasonable suppression of Chinese enterprises. China will take necessary measures to firmly safeguard its interests.

Practical Implications for Foreign Founders in China

For foreign founders registering or operating a company in China, this development underscores the importance of staying informed about regulatory and geopolitical risks that could affect business operations. While the immediate impact may be limited to the listed entities, the broader trend of US-China trade tensions can influence supply chain decisions, compliance requirements, and market access.

Key Considerations:

• Supply Chain Due Diligence: Foreign founders should conduct thorough due diligence on their Chinese suppliers and partners to ensure they are not inadvertently affected by US entity listings or sanctions. This includes checking whether any business partners appear on US government lists.
• Compliance with Chinese Regulations: Companies operating in China must comply with local laws, including those related to labor and human rights. China's legal framework ensures labor rights are protected, and businesses should maintain proper employment practices.
• Monitoring Policy Developments: Both US and Chinese government announcements can change rapidly. Foreign founders should regularly monitor official sources, such as MOFCOM and US Department of Homeland Security, for updates that may impact their industry.
• Risk Management: Diversifying supply chains and maintaining flexibility can help mitigate risks associated with geopolitical tensions. Engage local legal and business advisors to navigate complex regulatory environments.

The MOFCOM statement reflects China's firm stance against what it considers unjustified US actions. Foreign founders should be aware that China will take necessary measures to protect its interests, which could include countermeasures affecting trade or investment. Staying informed and prepared is essential for sustainable operations in China.

Conclusion

The US addition of Chinese entities to the Xinjiang forced labor list is a reminder of the volatile trade environment. Foreign founders in China should remain vigilant, ensure compliance, and seek expert guidance to navigate potential challenges.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.